VINCI - 2005 annual report

4.3 ENERGIES
VINCI Energies has continued its external growth policy and acquired:
– in March 2005, the German company NK Networks & Services, specialised
in network infrastructure integration, ToIP (telephone on internet)
and network security;
– in June 2005, 80% of the Portuguese company Sotécnica, a Portuguese
leader in the design, construction and maintenance of technical installations
in industry, services, airports and energy infrastructures;
4.4 CONSTRUCTION
In January 2005, a consortium comprising VINCI Construction Grands
Projets, Hochtief (Germany), American Bridge (USA), Besalco (Chile) and
Tecsa (Chile) won the concession contract for the Chiloé Bridge in Chile,
worth €400 million. The Chiloé Bridge contract provides for 32 months
4.5 VINCI IMMOBILIER
The reorganisation of the Group’s property activities has led to the formation
of the VINCI Immobilier division, bringing together the property
development and project organisation operations of the subsidiaries Sorif
5. ASSESSMENT BY RATING AGENCIES
In connection with the French Government’s disposal of its shareholdings
in the motorway concession operating companies, Standard & Poor’s
placed VINCI’s BBB+ rated long-term note under negative surveillance on
25 August 2005 (while confirming the A-2 rated short-term note) and
Cofiroute’s long-term A rated notes and short-term A-1 rated notes on
9 September 2005.
On 14 December 2005, following the French Government’s decision to
sell its 50.4% stake in ASF to VINCI, Standard & Poor’s confirmed the BBB+
rating for VINCI’s long-term notes and the A-2 rating for its short- term
notes. However, the BBB+ rated long-term note remains under negative
B. ACCOUNTING POLICIES AND VALUATION METHODS
1. GENERAL PRINCIPLES
In application of European Regulation 1606/2002 of 19 July 2002 on
international accounting standards, VINCI’s consolidated financial statements
for the period ended 31 December 2005 have been prepared, for
the first time, in accordance with the IFRS and interpretations published
by the IASB, applicable for the 2005 financial year and as endorsed by the
European Union. The 2004 comparative financial information has been
prepared using the same standards and interpretations. In particular, the
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VINCI 2005 ANNUAL REPORT
– in July 2005, IDF Thermic, which installs refrigerated equipment for
warehouses and commercial premises, as well as air-conditioning and
air treatment plants in cold stores.
of technical engineering – this time also being used to finalise the project’s
financing – followed by 65 months for construction and a 30-year
operation period.
and Elige. These entities merged legally on 31 August 2005, with effect
from 1 January 2005.
surveillance until completion of the share capital increase intended to
partially finance the transaction.
Following the announcement on 14 December, Standard & Poor’s also
lowered ASF’s long-term note from A+ to BBB+ and its short-term note
from A-1 to A-2. These notes remain under negative surveillance until
completion of VINCI’s share capital increase.
On 14 December 2005, Moody’s confirmed the Baa1/P-2 outlook stable
rating of the VINCI notes. Neither Cofiroute nor ASF are rated by
Moody’s.
2004 IFRS data has been prepared taking account of IAS 39 Financial
Instruments: Recognition and Measurement and IAS 32 Financial Instruments: Disclosure
and Presentation. The Group has opted for application of these two standards
as from 1 January 2004 in order to ensure better comparability between
the 2004 and 2005 financial statements. The provisions of IAS 39 that
were rejected by the European Commission are not applicable within the
Group.